MSDD vs VYM

Quick Verdict

VYM has a lower expense ratio. MSDD delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: MSDDMore Diversified: VYM

Side-by-Side Comparison

MetricMSDDVYMWinner
Expense Ratio1.50%0.04%
AUM$2M$79.0B
Dividend Yield0.00%2.86%
Holdings1568
YTD Return-45.26%+15.80%
1Y Return+70.78%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)133.8%14.6%
Max Drawdown-84.9%-58.8%
Fund FamilyGraniteSharesVanguard (US)
CategoryAlternativeEquity
InceptionJun 9, 2025Nov 10, 2006

MSDD vs VYM Performance

GraniteShares 2x Short MSTR Daily ETF (MSDD) is a ETF from GraniteShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MSDD returned +70.78% while VYM returned +26.12%. Year to date, MSDD is down 45.26% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

MSDD has been the more volatile fund, with annualized monthly volatility of 133.8% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -84.9% for MSDD and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at -0.16. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSDD charges 1.50% per year while VYM charges 0.04%. On a $10,000 position that is $150 vs $4 annually, a gap of $146 per year that compounds over a long holding period. On income, MSDD currently yields 0.00% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, MSDD or VYM?

MSDD has an expense ratio of 1.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $146 per year of difference.

Which performed better, MSDD or VYM?

Over the past year MSDD returned +70.78% vs +26.12% for VYM, so MSDD leads on 1-year performance. Over the longest common window we track (1 years), MSDD annualized +87.92% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, MSDD or VYM?

MSDD has been the more volatile fund at 133.8% annualized versus 14.6% for VYM. Worst drawdown: MSDD -84.9% vs VYM -58.8%.

Should I hold both MSDD and VYM?

MSDD and VYM have a monthly-return correlation of -0.16, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MSDD or VYM?

MSDD yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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